Hi,over the last week I have been steadily buying MDS.Over the next 4 months ENR have a huge exploration program planned which is about to get under way.MDS holds the ground to the west ,northeast and southeast of ENR.Also to the west of MDS's western block lies the enormous holdings of Consolidated Minerals and the Woodie Woodie manganese mine.To the east of MDS's eastern lease applications(which are uncontested)lies Newcrest where as well as the world class gold deposit of Telfer Newcrest are planning to begin development of Australia's largest tungsten deposit just to the south of Telfer.Interesting to note that both SBM and IGO have also taken applications on ground in the area.To the north of course is ABY's Nifty mine and to the southeast their Maroochydore Cu deposit.MDS really is a minnow amongst whales and I think that as soon as ENR start drilling then interest will return to this area and we'll see some decent movement up in MDS's SP.I have spoken to management and as soon as native title holders finish their discussions then MDS expect these leases to be granted and they will then make these Patterson leases their main exploration priority. In conclusion I think MDS represents a good mid term punt for the next few months.Sitting at a one year low I don't envisage a lot of downside and a return to the low 4's would represent a return from current buying of 30-40% plus at least.
MDS Price at posting:
2.7¢ Sentiment: Buy Disclosure: Held
